U.S. Direct Investment Abroad

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U.S. Direct Investment Abroad

A major investment by an American corporation outside the United States. For example, an American company may buy a factory in Indonesia because labor costs are lower. Many economists believe that U.S. direct investment abroad is good for an economy, as it provides jobs and increases domestic capital. Critics point out that profits usually leave the invested country and go to the American company. U.S. direct investment abroad is a type of foreign direct investment.
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References in periodicals archive ?
US direct investment flows to the region totalled $77m in 2000, or less than 0.1% of total US direct investment abroad. In 2000, US direct investment flows to sub-Saharan Africa decreased by 92.3%.